Operations begin at Bangladesh’s first LNG terminal

Bangladesh has started operations at the country’s LNG terminal, the country’s energy minister said on Monday, following delays related to technical problems and bad weather, Reuters reports.

The FSRU, which arrived in Bangladesh in April to offload its maiden cargo of LNG from Qatar and moor permanently as an import terminal, began operations on Saturday. It was initially expected to start in May.

The startup will allow Bangladesh to import LNG to offset falling domestic gas production, feeding industrial demand and power generation in a nation where 30% go without electricity. It’s also expected to boost Asian LNG prices, coinciding with an anticipated rise in demand ahead of winter.

“It certainly adds to the factors that point to a very tight market this winter,” said Nicholas Browne, Senior Gas Analyst at energy consultancy Wood Mackenzie. “This is mainly driven by limited additional supply until late 2018 together with strong expected demand from China and South Korea.”

The FSRU initially started operations last week but had to call a halt due to a leak in an onshore facility, a source told Reuters.

“We have started the process of feeding the gas to the grid,” Nasrul Hamid, Bangladesh’s State Minister for Energy and Power told Reuters on Monday. “This is a first step and we are taking more initiatives to meet growing consumption needs and feed the expanding economy.”